Guide to Finance

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Top 10 Small Cars

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Keeping accurate records for your business is a crucial task. But, many business owners fail to take the necessary steps to ensure that this task is completed properly. Bookkeeping is essential for ongoing record keeping, legal protection and accurate tax filing. By understanding what the most common bookkeeping mistakes are, your small business can work to avoid them.



Here are the 10 most common small business bookkeeping mistakes:

1. Poor Receipt Record Keeping- Many businesses keep accurate records for larger receipts, but fail to keep accurate records of small expenses under $75. Part of the reason for this is that it is easy to lose receipts or to consider a small expense as insignificant. Maintaining accurate records can not only save you money on your income taxes, but can provide the much needed documentation in the event of a business audit.

2. Lack of Professional Help- Many small business owners fail to recognize the importance of hiring a professional to manage the task of bookkeeping. A bookkeeper will not only know what to record and how, but they are kept abreast of legal changes that you may not be familiar with on an ongoing basis, many of which can save your business capital.

3. Poor Tracking- Many business owners pay for expenses out of their own personal funds. For example, they may use their personal credit cards or cash accounts to pay for business expenses. And, they often do not keep accurate records of these expenses. It is important to keep accurate records of any and all expenses and whether or not they were reimbursed.

4. Improper Employee Classification- Many businesses have a combination of independent contractors and employees. Business must properly classify their employees for tax purposes and must keep these designations separated.

5. Poor Communication- Strong communication between employees and bookkeepers is essential as this will work to avoid reporting and other financial mistakes. It is advised to schedule regular conference calls and meetings to ensure that mistakes are minimized.

6. Lack of Financial Reconciliation- It is vital that businesses reconcile their financial records at least on a monthly basis. Errors are more likely to be made if this task is not completed on a timely basis.

7. Lack of Record Back Up- Even though we live in a technological age, issues can arise. It is important for every business to back up their data to avoid crucial losses.

8. Poor Sales Tax Reporting- This may not affect every business, but not reporting sales tax and not accurately accounting for sales tax is a common bookkeeping error.

9. Poor Petty Cash Management- Many businesses operate with a small amount of petty cash, but many lack proper accounting systems to track it. Be sure to set up a system to track the cash kept on hand in the business and what it is used for.

10. Improper Expense Categorization- For proper tax reporting, business expenses should be properly categorized. Formal bookkeeping practices can be used to help reduce the likelihood of improper categorization.
Top 10 Small Cars
1) The business creedo of yourself and every single one of your employees should be simply this, "?EVERY member of our team who, in any capacity, comes in contact with our customers, is a salesperson, and the impression he or she makes, good or bad, is a lasting advertisement!? (quoted from Fast Company).

2) Do you know what PR is and how to use it to positively position your business in the media? I'll bet your competitors do. Nearly every mention of a company or business in the newspapers and magazines is a direct result of publicity efforts. Being quoted or featured in an article speaks volumes to your clients and readers who are your potential prospects. A good PR consultant can do that for you and show you ways to extend the shelf life of that article beyond its publication.

3) Do you consider training and coaching, an expense or an investment? How you look at the money spent in these areas affects your willingness to spend money at all. Would you look at prescriptions as a waste of money? Training and coaching is an investment in you, your vision, and your company.

4) Do you have a sound prospecting and/or marketing plan in place? It takes time to build a profitable business. It takes time for your marketing efforts to start producing results. According to the Small Business Administration, the number one reason why businesses fail, is lack of financing. I think their wrong, I think it's lack of planning and lack of sales. Did you know that 50% of all new businesses fail within the first year? And that 95% of all new businesses fail within the first 5 years! Don't be caught into thinking it won't happen to you. Sales is the lifeblood of your organization, nothing superceeds sales.

5) What percentage of your business is from repeat customers? This is important to know because if it's too low, then it needs to be improved. The estimated cost of getting a new customer versus retaining an existing one can be as much as five to one in terms of dollars spent. Keeping customers is more cost-effective than constantly seeking new ones. The next question you need to ask yourself, when is the last time we offered a new product or service? Have you conducted any market surveys from your present clients to see what kind of products or services they want to see from you? Loyal customers want to stay loyal, don't make them go to competitors to get newer more innovative solutions.

Also, how do you build customer loyalty? If your customers don't feel special when coming to you for products of services, why should they stay with you? Have a customer appreciation day or a special invitation only sale for your regulars. Create a mailing list of your regulars. Send occasional post cards or greeting cards for Christmas, special events or just to keep in touch. Learn to recognize them on sight and greet them by name when they visit you.

6) Do you have all of your systems in place? Do all of your prospecting and marketing pieces lead to one place? Does that one place convert visitors to buyers? Do you have systems in place to build relationships with your clients and to further solidify your relationships with current customers?

7) Do all of your sales and marketing materials project an image of professionalism? Do your customers fully understand the benefits of doing business with you? What problems do you solve for people? Is this reflected in your literature and your communication with prospects?

8) How long has it been since you really talked to one of your customers? Just as you appreciate when your Doctor takes time to talk to you, your customers will appreciate you if you take an interest in their needs. If you have a service business, have lunch or coffee periodically with some regulars ? even if they only contact you once or twice a year. The personal touch in an impersonal world will be remembered.

9) How is your business doing compared to your competition? Every company, no matter what the size, has competition ? even home-based businesses. Is their business growing or downsizing? Is their pricing or service better than yours? If so, what can you tell potential customers about the price difference? Think about how you can improve your service to meet or exceed your customer's expectations.

10) If you have employees, are they happy? Don't ask them directly, but observe them throughout the day. Watch, listen and learn. Employees who like their jobs don't watch the clock for quitting time, aren't habitually late, don't have poor body language, don't spend time on personal phone calls, and don't look like they never smiled. Observe how they interact with customers. Not everyone is a match for direct contact with the public, so make sure you don't have an employee who is driving business away.

Remember the old business manager adage, hire slow, fire fast.

And here is your bonus tip, when is the last time you really took a vacation? Don't burn yourself out!
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Both Salim Omar, Cpa & Kevinboyle are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Salim Omar, Cpa has sinced written about articles on various topics from Marketing, Finances and Business Plan. Salim Omar, author of specializes in providing accounting and tax services to small business owne. Salim Omar, Cpa's top article generates over 49500 views. to your Favourites.

Kevinboyle has sinced written about articles on various topics from Internet Marketing, Guide Guitar and Telemarketing. Kevin Boyle is an expert sales coach/trainer and the author of "The Secrets to Sales Mastery"If you would like to learn more innovative new skill sets and strategies to help you build an incredibly successful business and dramatically improve your sales r. Kevinboyle's top article generates over 12100 views. to your Favourites.
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